Over the weekend, the government took unprecedented steps to save the mortgage market by taking over control of the two largest buyers of mortgage loans, Fannie Mae and Freddie Mac. While this news, and all of the ramifications of it, still needs to be digested and analyzed (as though we didn't know it was coming!), it may prove to be very good news for mortgage rates and the Triangle real estate market.
Why? Mortgage rates are based on what happens in the bond market. The bond market (and stock market) doesn't like uncertainty. Put simply, this move adds a little certainty to what has been a really uncertain market. So far this morning the bond market and mortgage rates are really liking the news! If this is sustainable, the news of lower mortgage rates may very well be what is needed to release some of the pent up demand for homes that is likely out there in the Triangle market.
STAY TUNED!
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